LondonMetric

LondonMetric to purchase and fund warehouse development for £24m



LondonMetric Property PLC has agreed to purchase and fund a 232,000 sq ft distribution warehouse development for £24m.

Speciality chemical company Croda has pre-let the warehouse on a 20-year lease at an annual rent of £1.3m.

The 33-acre site is located adjacent to junction 36 of the M62 near Huddersfield.

Croda will use it as its global distribution hub and invest a significant amount in an automated facility.

Construction will commence imminently and is expected to complete in mid-2020, with planning consent in place for around 140,000 sq ft of additional development.

Andrew Jones, chief executive at LondonMetric, said: “In this ongoing low interest rate environment, we continue to be attracted to sustainable real estate which can deliver reliable, repetitive and growing income returns.

“This latest distribution investment is let to a high-quality occupier who is an existing customer of ours. 

“It benefits from a very long lease at an attractive yield that is inflation linked and will further improve the quality of our portfolio as well as offer further occupier-led development potential.”


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